Pakistan continues to witness a strong inflow of foreign remittances, with the month of May 2025 alone registering a remarkable $3.7 billion in workers’ remittances. According to the latest data released by the State Bank of Pakistan (SBP), this figure represents a significant 16.0 percent increase compared to the previous month and a 13.7 percent rise on a year-over-year basis.
This notable upswing in remittances comes at a critical time for the country’s economy, offering substantial support to its foreign exchange reserves and helping stabilize macroeconomic indicators. It reflects not only the resilience of overseas Pakistani communities but also the increasing digitization and efficiency of formal financial channels through which these funds are transferred.
Cumulatively, during the first eleven months of the fiscal year 2025 (July to May), remittances have reached a total of $34.9 billion. This marks a substantial 28.8 percent increase compared to the $27.1 billion recorded during the same period in the previous fiscal year (FY24). The impressive growth highlights a positive trend in overseas contributions to the national economy and indicates rising trust in formal remittance systems.
The majority of the inflows during May 2025 originated from four major regions. Saudi Arabia led the list with $913.9 million, followed by the United Arab Emirates with $754.2 million. The United Kingdom contributed $588.1 million, while the United States accounted for $314.7 million. These four countries remain the top remittance corridors for Pakistan, driven by a large expatriate workforce and strong diaspora connections.
This sustained growth in remittance inflows is being viewed as a result of continued efforts by the government and banking sector to streamline digital remittance platforms and provide incentives for using formal channels. Initiatives such as low-cost digital transfer services, enhanced banking access for overseas Pakistanis, and partnerships with international fintech providers have contributed to these positive results.
In addition to supporting the balance of payments, the inflow of remittances plays a vital role in household income for millions of families across Pakistan. The funds are typically used for essential expenditures such as education, healthcare, housing, and small business investments, further stimulating domestic economic activity.
The State Bank of Pakistan has reiterated its commitment to ensuring that remittance processes remain efficient, transparent, and accessible. The latest figures affirm the central role of overseas Pakistanis in the country’s economic framework and the growing reliability of digital and regulated channels for cross-border money transfers.
As Pakistan looks toward the end of fiscal year 2025, analysts expect remittances to continue their upward trajectory. With supportive policies and further expansion of digital financial services, remittances are poised to remain a cornerstone of economic stability and growth in the years to come.